On 1 April 2026 — seventeen days from the date of this article — the Valuation Office Agency will implement a new national rating list, resetting the rateable values of every commercially occupied property in England. This is the most significant overhaul of the business rates system in three years, and for many businesses it will produce a rates bill in 2026/27 that looks materially different from the one paid in 2025/26.
Business rates are calculated by multiplying the rateable value of your property by a national multiplier set by the government each year. When rateable values are reset, the multiplier is also adjusted to ensure that the overall revenue collected from business rates does not increase by more than the government intends. In practice, this means that some properties will see their bills rise and others will see them fall — depending on how rental values in their sector and location have moved since the last revaluation.
At CoreAcc Accountants, we work with a wide range of clients whose premises affect their rates position — independent retailers, hospitality businesses, office occupiers, industrial tenants, and commercial property owners. This guide explains every aspect of the 2026 revaluation: how your new rateable value is calculated, how the new multipliers work, what reliefs are available, how transitional protection applies, and — critically — what to do if you believe your new rateable value is wrong.
Disclaimer: This article is for general information only and does not constitute professional advice. Rates liabilities depend on specific local and property circumstances. Always seek specific advice for your individual situation.
1. The Revaluation: What Changes on 1 April 2026
A business rates revaluation is the periodic reassessment of the rateable value assigned to every commercial property in England. Rateable values are supposed to reflect the open market annual rental value of the property at a specific reference date — known as the Antecedent Valuation Date, which for the 2026 revaluation is 1 April 2024.
The use of 1 April 2024 as the reference date means that the new rateable values reflect the commercial property rental market as it stood two years ago — capturing the recovery from pandemic disruption, the subsequent inflation of industrial and logistics rents, and the mixed picture on high street and office rents that has characterised the market since 2022.
This reference date matters for understanding what the new values should reflect. Where a landlord argues that their property is overvalued, the evidence that counts is evidence of comparable market rents as at April 2024 — not current market conditions in March 2026. If the market in your sector has deteriorated since April 2024, that deterioration does not affect the 2026 rateable value but may be relevant to a future revaluation.
How the VOA sets rateable values
The Valuation Office Agency uses rental evidence from the period around the antecedent valuation date to determine the open market annual rental value for each property. For most commercial properties, this involves comparing the property to similar properties for which actual rents are known and making adjustments for differences in size, location, condition, and specification.
For standard retail units, offices, and industrial premises, the valuation is usually straightforward — the evidence base of comparable market rents is substantial. For more unusual properties — specialist leisure facilities, hotels, petrol stations, and the like — the VOA may use alternative valuation approaches based on turnover, receipts, and profits.
The rateable value is not the same as the market rent. It is an estimate of the rent that might be achievable at the antecedent valuation date in the open market, on a specific set of statutory assumptions including that the property is vacant and available to let, that both landlord and tenant are acting reasonably, that the landlord is responsible for repairs and insurance, and that there are no exceptional tenant benefits.
2. The 2026 Multipliers: How Your Bill Is Calculated
Your annual business rates liability is calculated by multiplying your rateable value by the relevant multiplier. The multiplier is expressed in pence per pound of rateable value, and it is set nationally each year by the government.
For 2026/27, two permanent multipliers apply across England. The standard multiplier applies to properties with a rateable value of £51,000 or above and to properties below that threshold that do not qualify for the small business rate relief multiplier. The small business multiplier applies to properties with a rateable value below £51,000, provided the occupier meets the conditions for the small business multiplier.
From 1 April 2026, a third multiplier has been introduced — a lower permanent multiplier specifically for qualifying retail, hospitality, and leisure properties with a rateable value below £500,000. This replaces the previous system of annual temporary relief for the retail, hospitality, and leisure sector and is intended to provide long term structural relief for physical high street and hospitality businesses rather than year by year uncertainty over whether a temporary discount will be renewed.
The introduction of a differentiated permanent multiplier for retail and hospitality is a genuinely positive structural change for qualifying businesses. Under the previous system, whether you received relief depended on annual Budget decisions. Under the new permanent multiplier, the lower rate is built into the rates bill calculation itself and applies automatically to qualifying properties.
The exact multiplier figures for 2026/27 are published by the government and available from your local billing authority. Your local authority will issue a new rates demand notice following 1 April 2026 incorporating the new rateable value and the applicable multiplier.
3. Small Business Rate Relief: Who Qualifies and What They Get
Small Business Rate Relief is available to businesses that occupy a single property with a rateable value below £15,000. The relief is applied by the local billing authority and reduces or eliminates the rates liability for qualifying properties.
Properties with a rateable value of £12,000 or below receive 100% Small Business Rate Relief — meaning no business rates are payable at all. Properties with a rateable value between £12,001 and £15,000 receive tapered relief on a sliding scale, reducing from 100% at the lower end to zero at £15,000.
To qualify for Small Business Rate Relief, the ratepayer must not occupy any other business properties in England, or, if they do occupy additional properties, none of those additional properties must have a rateable value of £2,899 or above and the rateable values of all properties combined must not exceed £19,999.
The single property condition is frequently misunderstood. A business that opens a second premises — even a small satellite office or a storage unit — may lose the relief on its main property if the second property has a rateable value above £2,899. Where relief is lost because of a second property, it is not automatically reinstated if that property is subsequently vacated — the ratepayer must notify the local authority and reapply.
A business that occupies a property with a rateable value below £51,000 automatically benefits from the small business multiplier rather than the standard multiplier, even if it does not qualify for Small Business Rate Relief itself. This reduces the amount payable per pound of rateable value compared to a larger property.
4. Retail, Hospitality and Leisure Relief in 2026/27
In addition to the new permanent lower multiplier for qualifying retail, hospitality and leisure properties, a separate Retail, Hospitality and Leisure Relief continues to apply for 2026/27. This relief provides a 40% reduction in the rates liability for qualifying properties, capped at a maximum total relief of £110,000 per business across all qualifying properties.
The relief applies to properties that are wholly or mainly used as shops, restaurants, cafés, bars, pubs, cinemas, live music venues, hotels, guest houses, and similar leisure and hospitality premises. It does not apply to financial services businesses, legal offices, medical practices, or other professional services businesses, even if they occupy a retail unit on a high street.
For a business with a rates liability of £25,000 before relief, the 40% reduction reduces the bill to £15,000. For a business with five qualifying premises and a combined rates liability of £350,000, the cap of £110,000 means the maximum saving is £110,000 — leaving a net liability of £240,000 rather than the uncapped 40% reduction of £140,000.
The relief is applied automatically by local billing authorities for properties that are clearly within the qualifying categories. Where the use of the property is less clear — a hybrid premises that combines retail and office use, for example — the ratepayer may need to provide evidence of qualifying use to the local authority.
5. Transitional Relief: Protection Against Large Bill Increases
Even where a business's rateable value has increased substantially in the revaluation, transitional relief limits how much of that increase can take effect in any single year. This prevents the revaluation from causing an immediate and severe cash flow shock for businesses in sectors or locations where market rents have risen sharply.
The 2026 transitional relief scheme caps the annual increase in the rates liability for properties that have seen their rateable value rise as a result of the revaluation. The cap is applied as a percentage of the previous year's bill, adjusted for inflation, and the uncapped increase is then phased in over subsequent years.
For small properties — those with a rateable value below £20,000 — the annual increase in the first year of the revaluation is capped at 5% plus inflation. This means that even if a property's rateable value has doubled, the rates bill in the first year of the new list cannot increase by more than 5% above the previous year's bill adjusted for the September retail price index.
For medium properties — those with a rateable value between £20,000 and £99,999 — the cap in the first year is 10% plus inflation. For large properties — those with a rateable value of £100,000 or above — the cap is 30% plus inflation.
Properties whose rateable value has fallen as a result of the revaluation also face limits on how quickly they can benefit. A property whose bill should fall by 40% does not immediately receive the full reduction — the benefit is also phased in over the transitional period. This is designed to maintain the revenue neutrality of the revaluation overall.
Transitional relief applies automatically. There is no application required. Your local billing authority calculates and applies the transitional adjustment when issuing your new rates demand.
6. Worked Examples
Worked Example 1: A Small Retail Unit Benefiting from Transitional Relief
Brightside Stationery is a small independent stationery shop in Hertfordshire. Its current rateable value (under the 2023 rating list) is £14,500. Its current rates bill, after Small Business Rate Relief tapering, is approximately £4,200 per year.
Under the new 2026 rating list, the VOA has assessed the property's rateable value at £21,000 — an increase of 44.8%. At this level, the property is above the £15,000 threshold for any Small Business Rate Relief. Without transitional protection, the bill at the small business multiplier (approximately 49.9p) would be approximately £10,479 — more than twice the current bill.
With transitional relief, the maximum increase in the first year is 5% plus inflation (say 7.5% overall). The cap applies to the previous bill of £4,200, producing a maximum first year bill of approximately £4,515. The remaining increase phases in over subsequent years.
The transitional relief protects Brightside from an immediate doubling of its rates bill, giving the business time to absorb the change incrementally. However, the business should understand that the full liability — approximately £10,479 — will eventually apply unless it successfully challenges the new rateable value.
Worked Example 2: A Hospitality Business Benefiting from the New Multiplier
The Crown, a pub in South Hertfordshire with a rateable value of £38,000 under the new 2026 rating list, qualifies for both the small business multiplier and the Retail, Hospitality and Leisure Relief. It also qualifies for the new permanent lower retail, hospitality and leisure multiplier introduced from April 2026.
Without any relief, the bill at the standard multiplier would be approximately £20,748. Under the small business multiplier (approximately 49.9p), the bill before relief is approximately £18,962. After the 40% Retail, Hospitality and Leisure Relief, the bill is approximately £11,377 — a reduction of more than 45% from the headline calculation.
The pub's landlord should confirm with the local authority that both the lower multiplier and the relief are correctly applied. Where the two mechanisms overlap, the most favourable combination should apply. The £110,000 cap on the relief is not relevant here as the pub's liability is well below that threshold.
Worked Example 3: An Office Property Whose Rateable Value Has Fallen
Clearview Consulting Ltd occupies a serviced office in Watford. Under the 2023 rating list, the office had a rateable value of £32,000 and a rates bill of approximately £16,640 at the standard multiplier. The local office market softened between 2021 and 2024 as hybrid working reduced demand, and the VOA has assessed the new rateable value at £24,000 — a reduction of 25%.
The new bill at the small business multiplier would be approximately £11,976 — a saving of approximately £4,664. However, transitional downward phasing means the full reduction does not apply immediately. The bill falls gradually over the transitional period, with the full reduction materialising over two to three years rather than on day one.
Clearview should note that even if the new rateable value reflects a genuine reduction, it may still be possible to challenge it further if comparable evidence suggests the VOA's assessment of the April 2024 market rent is too high.
7. How to Check Your New Rateable Value
The Valuation Office Agency publishes the new rating list from 1 April 2026 on its website at gov.uk/find-business-rates. You can search for any property by address and view the new rateable value, along with the description and area used by the VOA in its assessment.
It is worth checking your new rateable value promptly on 1 April 2026 or as soon as it becomes available, for two reasons. First, if the value is wrong, there are deadlines for challenging it — and delay can narrow your options. Second, the rateable value description may contain errors in the floor area, the property use category, or other details that affect the valuation and that you can correct through the challenge process.
Your local billing authority will also issue a new rates demand notice from 1 April 2026 showing the new rateable value, the applicable multiplier, any reliefs applied, and the resulting liability for the year. Check this notice carefully against the VOA's published rateable value and the reliefs you believe you are entitled to. Errors in local authority billing — including reliefs not being applied or transitional relief being calculated incorrectly — do occur and are worth correcting promptly.
8. The Check, Challenge and Appeal Process
If you believe your new rateable value is wrong — whether because the VOA has overstated the comparable market rents, made errors in the property description, or applied the wrong valuation approach — you have the right to challenge it through the Check, Challenge and Appeal process.
Check
The first stage is a Check — a formal notification to the VOA that you believe there is an error in the rating assessment. The Check must be submitted online through the Government Gateway. You must provide your reasons for believing the assessment is wrong and supply any supporting evidence you have. The VOA then has 12 months to respond to the Check.
During the Check stage, the VOA may agree with your evidence and reduce the rateable value without requiring further action. Where the VOA disagrees, the Check is rejected and you can escalate to a Challenge.
Challenge
A Challenge is a formal disagreement with the VOA's response to the Check. It must be submitted within four months of the VOA's response to the Check, or within 16 months of the Check being submitted if no response has been received. The Challenge sets out your case for why the rateable value should be different, supported by comparable evidence of market rents as at 1 April 2024.
HMRC statistics show that a significant proportion of Challenges result in a reduced rateable value, either through agreement with the VOA or through an independent determination. However, a Challenge requires genuine comparable evidence — simply asserting that the rates bill is too high is not sufficient. You need evidence of what comparable properties were actually let for in the market around April 2024.
Appeal
If a Challenge cannot be resolved through agreement, either party can escalate to an independent Appeal heard by the Valuation Tribunal for England. Appeals are decided on the evidence of comparable market rents. The Valuation Tribunal can reduce, maintain, or increase the rateable value. There is no charge for bringing an appeal.
The financial impact of a successful challenge
Where a rateable value is reduced following a Challenge or Appeal, the reduction is backdated to 1 April 2026 — the start of the new rating list. Any overpaid rates since that date are credited to your account or refunded. The potential refund from a successful challenge can therefore be substantial, particularly for a business with a high rates liability.
9. The Most Common Grounds for Challenge
Floor area errors
The VOA calculates rateable values partly on the basis of the gross internal floor area of the property. Where the floor area in the VOA's records is larger than the actual floor area — because a measurement survey has not been carried out or because the property has been reconfigured — the rateable value will be overstated. Commissioning a fresh independent measurement of the floor area is often the starting point of a successful challenge.
Comparable evidence
Where the market rents evidenced by the VOA as comparables do not accurately reflect the rental market for your specific property type, location, and condition as at April 2024, the rateable value can be challenged on that basis. This is particularly relevant for properties in peripheral locations, properties in poor condition, and properties in sectors where the market has diverged significantly from the VOA's comparable evidence.
Valuation approach
For properties where the VOA has used a profits or receipts approach rather than a rental comparison approach, the choice and application of that approach can itself be challenged. Hotels, petrol stations, and similar properties valued on a trading basis are particularly susceptible to errors in the assumed level of trade, the expenses deductions applied, and the resulting rateable value.
Material change of circumstances
Even after the new rating list takes effect, you can apply for a reduction in rateable value where there has been a material change of circumstances affecting the property — structural damage, a road closure affecting access, a new noise or environmental issue, or a significant change in the surrounding area. A material change of circumstances application is separate from the standard Check, Challenge and Appeal process and can be made at any time during the rating period.
Frequently Asked Questions
When does the 2026 revaluation take effect?
The new rating list takes effect on 1 April 2026. From that date, all business rates bills are calculated on the basis of the new rateable values. The previous rating list, which took effect on 1 April 2023, ceases to apply. Bills for 2026/27 will be issued by local billing authorities from 1 April 2026 and typically arrive in the first week of April.
What is the Antecedent Valuation Date and why does it matter?
The Antecedent Valuation Date (AVD) is the reference date used by the Valuation Office Agency to assess market rental values for the revaluation. For the 2026 revaluation, the AVD is 1 April 2024. All rateable values in the new list should reflect the open market rental value of the property as at that date. If you are challenging your rateable value, you need comparable evidence of market rents as at April 2024 — not current market evidence.
How do I find my new rateable value?
The new rating list is published on the VOA website at gov.uk/find-business-rates. You can search by address to find the rateable value, the description of the property, the floor area, and the valuation method used. The list becomes available from 1 April 2026. Your local billing authority will also issue a rates demand notice showing the new rateable value and the resulting liability for 2026/27.
What is the difference between rateable value and the rates bill?
The rateable value is the estimated open market annual rental value of the property, as assessed by the VOA. The rates bill is calculated by multiplying the rateable value by the relevant multiplier (expressed in pence per pound) and then deducting any applicable reliefs. A property with a rateable value of £30,000 at a multiplier of 49.9p has a gross rates liability of £14,970 before any reliefs are applied.
What is the new retail, hospitality and leisure multiplier?
From 1 April 2026, the government has introduced a permanent lower multiplier for qualifying retail, hospitality, and leisure properties with a rateable value below £500,000. This replaces the previous system of annual discretionary temporary relief. The lower multiplier is applied automatically by local billing authorities to qualifying properties. The applicable multiplier figure is published annually by the government.
What is Retail, Hospitality and Leisure Relief and who qualifies?
In addition to the lower permanent multiplier, qualifying retail, hospitality and leisure properties also benefit from a 40% reduction in their rates liability under the Retail, Hospitality and Leisure Relief, capped at £110,000 per business. Qualifying properties include shops, restaurants, cafés, bars, pubs, cinemas, hotels, and similar premises. The relief does not apply to financial services, legal offices, or professional services businesses. It is applied automatically by local billing authorities.
What is Small Business Rate Relief and do I qualify?
Small Business Rate Relief provides 100% relief from business rates for properties with a rateable value of £12,000 or below, and tapered relief for properties between £12,001 and £15,000. To qualify, the ratepayer must occupy a single business property, or if they occupy additional properties, none of those properties must have a rateable value of £2,899 or above and the combined rateable value of all properties must not exceed £19,999. The relief is applied by the local authority but must be applied for in some cases — contact your local billing authority to confirm your position.
How does transitional relief work and do I need to apply for it?
Transitional relief limits how much your rates bill can increase or decrease in any single year as a result of the revaluation. For small properties with a rateable value below £20,000, the annual increase is capped at 5% plus inflation in the first year. For medium properties (£20,000 to £99,999) the cap is 10% plus inflation, and for large properties (£100,000 and above) it is 30% plus inflation. Transitional relief is applied automatically by local billing authorities — you do not need to apply for it.
Can I challenge my new rateable value?
Yes. If you believe your new rateable value overstates the market rental value of your property as at April 2024, you can submit a Check through the Government Gateway as the first stage of the Check, Challenge and Appeal process. You will need to provide evidence supporting your view of the correct value. Where the VOA disagrees with your Check, you can escalate to a Challenge and ultimately to an independent Valuation Tribunal Appeal. A successful challenge results in a reduced rateable value backdated to 1 April 2026, with any overpaid rates refunded.
What is a material change of circumstances and can I claim one?
A material change of circumstances is a change to the property or its surroundings that has materially affected its value since the rating list was compiled. Examples include structural damage to the property, the closure of a nearby road affecting access and passing trade, a significant new environmental nuisance, or a major change in the surrounding area. Where a material change of circumstances has occurred, you can apply for a reduction in rateable value outside the normal Check, Challenge and Appeal process. The application must be made to the VOA and is assessed against the standard that the change is genuine, material, and not already reflected in the assessed value.
What CoreAcc Accountants Can Help You With
Business rates are often accepted as a fixed overhead that cannot be influenced. In practice, for many businesses they are neither fixed nor inevitable. Incorrect rateable values, missed reliefs, and transitional errors all represent real money — and with the 2026 revaluation taking effect in seventeen days, the time to review your position is now.
At CoreAcc Accountants, we can help you with a review of your new rateable value against comparable market evidence for your property type and location, identifying whether your assessment appears to be in line with the market or whether a challenge is worth considering. We can verify that all applicable reliefs are correctly applied on your rates demand — Small Business Rate Relief, Retail Hospitality and Leisure Relief, and transitional relief. We can advise on the Check, Challenge and Appeal process, including the evidence you would need and the realistic prospects of success. And we can model your total rates liability for 2026/27 as part of your broader cash flow planning for the year ahead.
Get in Touch
The 1 April 2026 revaluation is days away. If you have not yet reviewed your expected new rates liability, checked your relief entitlements, or considered whether your new rateable value is correct, the time to act is now.
Contact CoreAcc Accountants today for a conversation about your business rates position.
CoreAcc Accountants is an ACCA accredited firm of Chartered Certified Accountants based in Borehamwood, Hertfordshire. This article was published on 15 March 2026 and reflects business rates legislation and government guidance in force at that date. Specific multiplier rates and relief thresholds should be verified with your local billing authority. It does not constitute professional advice. Always seek specific advice for your individual circumstances.
